As the Bitcoin ecosystem continues to mature and user numbers grow, the limitations of its underlying network in scalability and interoperability are becoming increasingly apparent. The public chain CKB (Common Knowledge Base) of Nervos Network @CKB_CN, based on PoW consensus and the UTXO model, aims to provide decentralized scalability for Bitcoin through innovative Layer 2 solutions. With the technical support of the RGB++ protocol, Fiber Network, and JoyID, $CKB offers multi-asset circulation capabilities and smart contract functions, bringing new vitality to the BTCFi (Bitcoin Finance) ecosystem.
1. CKB: Uniqueness as the ideal Layer 2 for Bitcoin
The security of Bitcoin stems from its simple and robust design, but this design comes at the cost of flexibility and scalability. To improve Bitcoin's programming limitations, Nervos designed a customized Cell model and virtual machine CKB-VM, introducing Layer 2 smart contract and asset issuance capabilities in a highly compatible manner.
Robustness of PoW + UTXO
CKB uses proof of work (PoW) combined with the UTXO model, making it comparable to Bitcoin in terms of security and transparency. Its layered architecture provides Bitcoin with higher transaction throughput and performance, thus addressing the transaction bottlenecks caused by block size and confirmation time.
RGB++: The key to cross-chain interoperability
As an innovative financial protocol for BTCFi, RGB++ builds a non-bridge cross-chain capability between Bitcoin and CKB. The protocol achieves bridge-free cross-chain functionality for Bitcoin assets by mapping Bitcoin UTXO to CKB's Cells and endowing them with smart contract capabilities. This seamless integration greatly enhances Bitcoin's programmability, breaking down traditional barriers to asset circulation, and introducing more application scenarios and financial products for BTCFi.
2. RGB++: An innovative financial protocol in BTCFi
RGB++ protocol is not only one of the core components of CKB but also brings a brand new financial experience to BTCFi.
RGB++ has the following innovations in the management and cross-chain transfer of Bitcoin assets:
Security and efficiency of non-bridge cross-chain
RGB++ uses isomorphic binding technology to directly map Bitcoin's UTXO to CKB's Cells, avoiding traditional cross-chain bridges and the trust risks associated with bridging. Bitcoin assets can participate in more complex financial operations through CKB's smart contracts, realizing new applications in the BTCFi ecosystem like Initial Bitcoin Offering (IBO).
Data availability and execution enhancement
By storing key transaction elements on-chain, RGB++ enhances the security and data availability of Bitcoin assets. Through this design, RGB++ not only addresses the limitations of the Bitcoin UTXO model but also brings decentralized, non-custodial contract structures to the Bitcoin ecosystem, providing more diverse scenario support for BTCFi.
3. JoyID + Lightning Network: Leading a new experience in decentralized payments
Decentralized payments are an important application area for BTCFi. The JoyID wallet launched by CKB is the first to support the Lightning Network testnet, bringing a new transformation to the Bitcoin payment experience. JoyID is a Passkey wallet that provides a highly convenient decentralized solution for small payments and cross-border remittances.
Efficient and convenient payment experience
JoyID interacts with Bitcoin through the Lightning Network, making small payments faster and cheaper, allowing users to quickly complete micro-payments off-chain. The application prospects of JoyID in the BTCFi ecosystem are very broad, suitable not only for daily payments but also as an ideal choice for decentralized cross-border payments.
User-friendly, trustless experience
The user experience of JoyID is more streamlined, and it achieves fund control through a non-custodial method, allowing users to make payments without trusting a third party. This design aligns with BTCFi's requirements for decentralization and user control, demonstrating broad promotional potential.
4. Fiber Network: A new landscape for multi-asset circulation and cross-chain efficiency
As another key technology proposed by Nervos Network, Fiber Network will further promote multi-asset circulation and cross-chain capabilities in the BTCFi ecosystem. Fiber Network, as a scalable payment channel network, supports the circulation and interoperability of multiple assets within the Bitcoin ecosystem.
Seamless cross-chain circulation
Fiber Network circulates BTCFi assets on the Bitcoin Lightning Network without relying on complex cross-chain bridges. This seamless asset transfer method greatly enhances the multi-asset ecosystem of Bitcoin, allowing the Bitcoin network to support more decentralized financial applications.
Stability and availability of decentralized financial networks
The introduction of Fiber Network enhances the stability and liquidity of the Bitcoin ecosystem, expanding the application scenarios for BTCFi. Within this framework, BTCFi assets can not only circulate in a decentralized manner but also carry out complex financial operations on-chain through smart contracts.
5. Conclusion
Nervos CKB provides innovative Layer 2 scalability for Bitcoin through technologies such as PoW + UTXO model, RGB++ protocol, and Fiber Network. The design of $CKB enhances its programming ability and interoperability while maintaining the native security of Bitcoin, allowing Bitcoin to support not only simple value transfers but also various applications of the decentralized finance ecosystem. With the support of the RGB++ protocol, innovative financial products in BTCFi are continuously emerging, while JoyID and Fiber Network drive the application of decentralized payments and multi-asset circulation. Nervos Network offers an ideal Layer 2 solution for the Bitcoin ecosystem through these technologies, making the future BTCFi ecosystem richer and more diverse.
